Asked by Willie Alfaro Mora on Jul 07, 2024
Verified
Vernon owns a family run farming business.He earned $100,000 in the current financial year.He owes $70,000 that he cannot pay.This debt forms a part of his farm expenses to creditors,but he wants to keep the business running.Which type bankruptcy should Vernon file for?
A) Chapter 7 only
B) Chapter 11 and Chapter 7
C) Chapter 7 and Chapter 12
D) Chapter 12
Farming Business
An enterprise engaged in the cultivation of crops and/or the raising of animals for the purpose of producing food, fiber, and other agricultural products.
Chapter 12
A bankruptcy provision designed for "family farmers" or "family fishermen" to devise a plan to repay all or part of their debts.
Financial Year
A period used for calculating annual financial statements in businesses and other organizations, often stretching over a 12-month period but not necessarily aligning with the calendar year.
- Ascertain the qualifying conditions for diverse bankruptcy filing types.
- Acquire understanding of the roles and procedures in different chapters of bankruptcy.
Verified Answer
Learning Objectives
- Ascertain the qualifying conditions for diverse bankruptcy filing types.
- Acquire understanding of the roles and procedures in different chapters of bankruptcy.
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